Apple's App Tracking Transparency Framework Causing Advertisers to Spend More Money Targeting Android Users

Mobile advertisers are beginning to spend significantly more money targeting Android users thanks to Apple's implementation of a framework on iOS, severely impacting the amount of data companies can collect about users on iPhone and iPad.

generic tracking prompt orange
As reported by The Wall Street Journal, following the April roll-out of ATT, or the App Tracking Transparency framework, which requires that all apps on ‌iPhone‌ and ‌iPad‌ ask for users consent before tracking their activity across other apps, advertisers have begun to lower their spending on Apple's platform.

According to early data from the ad-measurement firm Branch Metrics Inc, seen by The Journal, less than 33% of iOS users have permitted apps to track them across other apps. The remaining 67% of iOS users opted not to permit apps to track their activity. As a result, the amount of advertiser spending on Apple's mobile platform has fallen by about one-third between June 1 and July 1, while spending on Android rose over 10% for the same month, according to ad-measurement firm Tenjin Inc.

After the tracking change took effect in April, many users of Apple's iOS operating system have received a high volume of prompts from apps asking permission to track them—requests that most have declined. Less than 33% of iOS users opt in to tracking, according to ad-measurement firm Branch Metrics Inc.

As more of that information has emerged, advertisers have adjusted their buying strategies. Spending on iOS mobile advertising has fallen by about one-third between June 1 and July 1, according to ad-measurement firm Tenjin Inc. Android spending rose 10% over the same period, Tenjin said.

Digital-ad agency Tinuiti Inc. has seen a similar pattern in its clients' spending, research director Andy Taylor said. When iOS users opted out of tracking, Tinuiti advertisers couldn't bid on them, he said. That dearth of iOS users drove up demand—and ad prices—for Android users. About 72.8% of smartphones world-wide use the Android operating system, and about 26.4% use iOS, according to Statcounter.

One reason digital advertisers say they're spending less on Apple's mobile platform is due to the lack of "granular data that made mobile ads on iOS devices effective and justified their prices."

Without proper user tracking, advertisers have significantly less data about a user's interests, preferences, and more. Advertisers and companies, such as Facebook, use that data to compile a profile of a user. The type of data collected from tracking helps advertisers to ensure that their ads are being targeted to potential customers

Digital advertisers say they have lost much of the granular data that made mobile ads on iOS devices effective and justified their prices. In recent months, ad-buyers have deployed their iOS ad spending in much less targeted ways than were previously possible, marketers and ad-tech companies say. The shortage of user data to fuel Facebook Inc.'s suite of powerful ad-targeting tools reduces their effectiveness and appeal among some advertisers, ad agencies say

While several advertisers are being impacted by ATT, Facebook has been the most vocal and critical of the new change. Ever since Apple began to beta test the framework, which was shipped as part of the iOS and iPadOS 14.5 updates, Facebook accused Apple of impacting small businesses who rely on advertising as a means of keeping their doors open. Facebook also proclaimed that the framework was anti-competitive because, in its view, it gives Apple an upper hand for running its own mobile advertising business on iOS devices.

Top Rated Comments

djcerla Avatar
13 months ago
Targeting the ones who spend as little as possibile looks like a sound strategy.
Score: 44 Votes (Like | Disagree)
polyphenol Avatar
13 months ago

Less revenue for iOS developers, less incentive to develop iOS applications?
I am more likely to pay for apps if they do not track me.

One of the big disappointments has been the developers who want both to charge and to gain from advertising and/ or tracking.

The model of offering an advertising-supported "free" version and a paid-for option is fine. But leave the tracking and unexpected advertising out of it.
Score: 28 Votes (Like | Disagree)
Seanm87 Avatar
13 months ago
Oh boo hoo cry me a river.

Glad these creeps aren't getting away with this spying anymore.
Score: 21 Votes (Like | Disagree)
LFC2020 Avatar
13 months ago
I’m sure this will make google happy ??
Score: 15 Votes (Like | Disagree)
FightTheFuture Avatar
13 months ago

So now they are targeting the high-spending Android users
That’s a thing?
Score: 13 Votes (Like | Disagree)
npmacuser5 Avatar
13 months ago

Less revenue for iOS developers, less incentive to develop iOS applications?
Better experience for us. Ad tracking should be a crime. Ad’s that do not track are annoying but tolerable. If an advertisement needs tracking, their products are not worth buying, period.
Score: 12 Votes (Like | Disagree)

Related Stories

Facebook Feature

Facebook Reports Record Ad Revenue for Q2 2021, Despite Apple's iOS Privacy Changes

Thursday July 29, 2021 2:31 am PDT by
Undeterred by Apple's recent anti-tracking privacy changes, Facebook continues to rake in billions in advertising revenue, as evidenced by its latest fiscal 2021 second quarter results announced Wednesday. On the company's Q2 earnings call, the social network revealed it had accumulated $28 billion in ad revenue, representing a 56% year-on-year increase. That saw Facebook more than double...
maxresdefault

Apple Shares Video Explaining How App Tracking Transparency Works

Monday April 26, 2021 11:22 am PDT by
Now that iOS 14.5 is available to the public, App Tracking Transparency is being enforced by Apple. Developers are no longer able to access the advertising identifier of your iPhone, iPad, or Apple TV without your express permission, which will prevent developers from tracking you across apps and websites for ad targeting preferences. If that sounds confusing, Apple has created an App...
tim cook mark zuckerberg

Apple's Privacy Measures to Cost Facebook $10 Billion in 2022

Thursday February 3, 2022 12:30 am PST by
Facebook has said measures being taken by Apple on iOS that make it harder for platforms and apps to track users across other apps and websites will cost its business $10 billion in 2022. Facebook yesterday reported $33.67 billion in revenue, and while higher than expected, earnings per share were shy of analyst expectations. Facebook, renamed to Meta, also offered lower guidance for the...
Instagram Feature 2

Instagram Limits Users' Ability to Limit How Much Time They Spend in the App

Tuesday February 22, 2022 2:52 am PST by
Instagram has quietly removed the ability for its users to limit their daily usage of the app to less than 30 minutes, reports TechCrunch. In 2018, Instagram introduced options in the app to set a daily time limit, with a reminder to be sent when that time limit is reached – useful for those who want to cut down on their social media usage. Originally, users were able to select a time...
facebook

Facebook Crowned 'Worst Company of 2021' by New Survey

Sunday December 19, 2021 3:47 am PST by
Facebook, otherwise known as Meta, has been crowned the worst company of the year, following a turbulent 12 months of controversies, public backlash, and an eventual entire rebrand of the social media giant, according to a survey conducted by Yahoo Finance. Yahoo Finance every year crowns the best company of the year, with Microsoft taking the top spot for 2021. This year, however, Yahoo...
facebook tracking notification

Antitrust Complaint Filed in Germany Over Apple's Incoming App Tracking Transparency Requirement

Monday April 26, 2021 7:17 am PDT by
Nine industry associations representing companies like Facebook and publisher Axel Springer today filed an antitrust complaint with Germany's competition regulator over Apple's incoming App Tracking Transparency requirement, according to the Financial Times. This follows a similar complaint filed by advertisers in France last year. In the complaint, the industry associations reportedly...
craig wwdc 2021 privacy

Apple's Privacy Features Have Cost Social Media Companies Nearly $10 Billion in Revenue

Monday November 1, 2021 4:42 am PDT by
As a result of its privacy features, Apple has cost social media companies including Meta, formerly known as Facebook, Twitter, Snapchat, and YouTube, nearly $10 billion in revenue in the second half of 2021, according to an investigation by the Financial Times. The Financial Times found that most users have opted out of tracking using Apple's App Tracking Transparency (ATT) framework, a...
apple privacy

More Users Trust Amazon and Google to Handle Their Personal User Data Than Apple, Survey Suggests

Wednesday December 22, 2021 7:29 am PST by
According to a new survey, more users trust Amazon and Google to handle their personal user data and internet browsing activity than Apple, while users overwhelmingly distrust Facebook, TikTok, and Instagram. The survey conducted by The Washington Post sampled over 1,000 internet users in the U.S. about how much they trust Facebook, TikTok, Instagram, WhatsApp, YouTube, Google, Microsoft,...

Popular Stories

top stories 2jul2022

Top Stories: M2 MacBook Air Release Date, New HomePod Rumor, and More

Saturday July 2, 2022 6:00 am PDT by
The M2 MacBook Pro has started making its way into customers' hands and we're learning more about how it performs in a variety of situations, but all eyes are really on the upcoming M2 MacBook Air which has seen a complete redesign and should be arriving in a couple of weeks. Other top stories this week included a host of product rumors including additional M2 and even M3 Macs, an updated...
Mac Studio IO

Apple Begins Selling Refurbished Mac Studio Models

Thursday June 30, 2022 7:42 pm PDT by
Apple today began selling refurbished Mac Studio models for the first time in the United States, Canada, and select European countries, such as Belgium, Germany, Ireland, Spain, Switzerland, the Netherlands, and the United Kingdom. In the United States, two refurbished Mac Studio configurations are currently available, including one with the M1 Max chip (10-core CPU and 24-core GPU) for...
macbook air m2

Exclusive: Apple Plans to Launch MacBook Air With M2 Chip on July 15

Wednesday June 29, 2022 5:23 pm PDT by
The redesigned MacBook Air with the all-new M2 Apple silicon chip will be available for customers starting Friday, July 15, MacRumors has learned from a retail source. The new MacBook Air was announced and previewed during WWDC earlier this month, with Apple stating availability will begin in July. The MacBook Air features a redesigned body that is thinner and lighter than the previous...
13 inch macbook pro m2 mock feature 2

M2 MacBook Pro Much Slower Than Previous Model

Friday July 1, 2022 2:24 am PDT by
Apple's new 13-inch MacBook Pro with the M2 chip features a significantly slower SSD compared to the previous model, resulting in poorer performance in some workflows, it has been discovered. Specifically, it has been found that the $1,299 base model with 256GB of storage has significantly slower SSD read and write speeds compared to the equivalent previous-generation 13-inch MacBook Pro....